Industry Analysis & Industry Trends
Unprecedented volatility in the international dairy market, combined with the onset of the global financial crisis, has had a significant bearing on the fortunes of the Milk and Cream Production industry. Economic growth and rising affluence from the growing economies of Asia, South America and the Middle East have resulted in a rapid increase in demand for milk and dairy products. Supplies from traditional milk exporters like Australia and New Zealand have declined due to adverse climatic conditions and high feed costs. Consequently, milk prices hit historic highs over 2007-08, which considerably aided revenue growth but eroded profitability... purchase to read moree
Industry Report - Industry Investment Chapter
The ratio of labour to capital is used to determine the amount of labour used for every unit of capital. It is an indicator of the capital-labour mix used in the day-to-day activities of the industry. Wage costs are used as a proxy for labour while depreciation is used as a proxy for capital. In 2011-12, IBISWorld estimates the capital-to-labour ratio in this industry will be approximately 1:3.9. This means that milk and cream producers require £3.90 worth of labour for every £1 worth of capital invested, indicating a medium level of capital intensity. This is reflective in the industry's need for machinery, research and development, and storage facilities for the assembly and manufacturing of the products... purchase to read more